Law & Business · Module 1
Licensing, Qualifiers and the C-36 Classification
What the C-36 license lets you do, who can qualify a license, and what it takes to keep one active. You will learn the official C-36 scope, the experience requirement, the rules for qualifiers (RME and RMO), the $25,000 contractor bond and qualifying individual bond, workers' compensation and automatic suspension, the two year renewal cycle with no continuing education requirement, what happens when a license expires, and why a license cannot be transferred.
Key Takeaways
- The C-36 covers safe water supply and fluid waste disposal, gas piping and appliances, water and gas piping from the owner's side of the utility meter, water heating equipment, and related safety devices (16 CCR 832.36).
- The qualifier needs at least four years of journey-level experience (or foreman, supervisor or contractor) in the last 10 years; education or apprenticeship credit can count, but at least one year must be practical experience.
- A responsible managing employee must be a permanent employee who works at least 32 hours a week or 80 percent of the business's hours, whichever is less (B&P 7068).
- A qualifier may qualify more than one firm only under the ownership conditions in B&P 7068.1, and never more than three firms in one year.
- If the qualifier leaves, notify CSLB within 90 days and replace the qualifier within 90 days, or the license is automatically suspended (B&P 7068.2).
- Every active license needs a $25,000 contractor bond (B&P 7071.6); a license qualified by an RME, or by an RMO owning less than 10 percent, also needs a $25,000 qualifying individual bond (B&P 7071.9).
- A license is automatically suspended the day required workers' compensation coverage lapses (B&P 7125.2). A license qualified by an RME cannot file a workers' compensation exemption.
- Licenses expire two years after the last day of the month of issue (B&P 7140). California has no continuing education requirement for contractor license renewal.
- An expired license can be renewed within five years, but you are unlicensed during the gap (B&P 7141). Licenses cannot be transferred (B&P 7075.1).
Why This Matters
CSLB's Law and Business study guide lists "Business Organization and Licensing" as one of the exam's major sections, covering company organization and licensing requirements. These rules also decide whether you can legally bid tomorrow's job. A suspended or expired license means any work you do is unlicensed work, with all the consequences that brings.
What the C-36 License Covers
CSLB's classification regulation (Title 16, California Code of Regulations, section 832.36) says a plumbing contractor provides a means for a supply of safe water, ample in volume and of suitable temperature for the purpose intended, and the proper disposal of fluid waste from the premises in all structures and fixed works. The classification includes, but is not limited to:
- Complete removal of waste from the premises, or the construction and connection of on-site waste disposal systems.
- Piping, storage tanks and venting for a safe and adequate supply of gases and liquids for any purpose, including vacuum, compressed air, and medical, dental, commercial and industrial gases.
- All gas appliances, flues and gas connections for all systems, including suspended space heating units. It does not include forced warm air units.
- Water and gas piping from the property owner's side of the utility meter to the structure or fixed works.
- Installation of any type of equipment to heat water or fluids for these purposes, including solar equipment for that purpose.
- Maintenance and replacement of all of the above and of health and safety devices such as gas earthquake valves, gas control valves, backflow preventers, water conditioning equipment and regulating valves.
Two related rules:
- A specialty contractor may take a contract that involves other trades only if the work outside the specialty is incidental and supplemental to the work in the licensed craft (B&P 7059(a)).
- CSLB's classification page notes that hazardous substance removal certification is available only to holders of certain classifications, and the C-36 is one of them.
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